BHP Billiton spin-off South32 expects challenging years ahead in China as it slashes costs and reviews its dams after the Brazil mine disaster.
Chief executive Graham Kerr said there was still excess supply for some key sectors that drive demand for commodities in the slowing Chinese economy.
"The next couple of years are going to be challenging," Mr Kerr told reporters on the sidelines of the company's annual general meeting in Perth on Wednesday.
"I don't think that's going to change.
"Demand out of China and India and other places will continue to be okay - not as strong as it was in the last decades."
He said it would take around two to three years for the excess supply of manganese, alumina, aluminium to work its way through the system.
He added there was unlikely to be a big fiscal stimulus out of China, but monetary policy was being loosened which would assist spending.
Companies with the best assets and cost structures would come out stronger, he said.
South32 also announced it had suspended manganese operations at its Samancor operations in South Africa until mid January when a major review is expected to be completed.
"Manganese is tough at the moment," Mr Kerr said.
He added that South32 had offered assistance to BHP Billiton following the recent deadly Brazil mine disaster and confirmed the company would review all of its tailings dams.
"As a consequence of that event we've had long deep discussion about what kind of exposure we have," he said.
"We are comfortable we don't have the same exposure."
But Mr Kerr said the company's operations, in Australia, South Africa, Brazil and Colombia, continued to perform well despite a significant deterioration in the operating environment.
He said the company would reduce costs by $US350 million per annum by the end of fiscal 2018 and reduce capital expenditure by nine per cent to $US650 million in full year 2016.
Shareholders have expressed concern about "excessive" bonuses being offered to executives.
Chairman David Crawford said South32, like the rest of the industry, was operating in a challenging global environment and responding through a program of reducing operational and capital expenditure.
"Market uncertainties are likely to persist for some time," Mr Crawford said.
South32 was established in May after the demerger of BHP assets, including commodities such as aluminium, nickel, silver and thermal coal.
